Abstract:
Performance management is a much broader and a complicated function of HR, as it encompasses
activities such as joint goal setting, continuous progress review and frequent communication, feedback
and coaching for improved performance, implementation of employee development programs and
rewarding achievements. Performance management can be regarded as a systematic process by which
the overall performance of an organization can be improved by improving the performance of
individuals within a team framework. It is a means for promoting superior performance by
communicating expectations, defining roles within a required competence framework, and establishing
achievable benchmarks. As end results, the performance appraisal positively affects to the employee
commitment and it will lead to achieving corporate objectives. However, there is a public opinion about
a poor performance management system in public sector organizations. Accordingly, some researchers
argue that performance management of public sector commercial banks is poorer than private sector
commercial banks in the Sri Lankan context.
Hence, this paper focuses on the assessment of the influence of the current performance management
system adopted by major state-owned commercial banks on job commitment of their executive
employees. The sample for this study was drawn from executive grade employees who are working at
Peoples Bank and Bank of Ceylon and data were collected by using self-administrated questionnaire.
Altogether 350 questionnaires were distributed by email and 208 completed questionnaires were taken
in for final analysis. The PLS based SEM was employed to measure the impact of the exogenous
variable on the endogenous variable based on the Smart PLS-3. The results revealed that among the set
of determinants, career development, is the most significant determinant of employee commitments
among executive officers of state-owned commercial banks in Sri Lanka. Further, it was revealed that,
alignment with organizational goals, is the least significant determinant of employee commitments
among executive officers of state-owned commercial banks in Sri Lanka.
